Government Moves to Track Hustler Fund Defaulters Using National ID Details

The government is planning a major crackdown on borrowers who have failed to repay loans taken from the Hustler Fund. Officials say new tracking measures will help trace millions of Kenyans believed to have disappeared after taking the government-backed microloans.

Hustler Fund Chief Executive Officer Henry Tanui revealed the plan while appearing before the National Assembly Special Funds Accounts Committee. He said authorities will rely on personal information submitted during registration, including details connected to National Identification cards, to identify loan defaulters.

Tanui warned that borrowers who believe they can take the money and vanish will soon face consequences. “The young people who think that they can borrow money from the government and disappear, they can’t, because we know how we will get you,” he told the committee.

The Hustler Fund was introduced in November 2022 to expand access to credit for small traders, youth and people working in the informal sector. The digital lending programme allows Kenyans to borrow small amounts directly through their mobile phones without traditional banking requirements.

Since the programme started, millions of people have applied for the loans. Tanui told lawmakers that the fund has already released about KSh83 billion to borrowers across the country.

Despite the strong uptake, repayment has not kept pace with borrowing. Government records show that about KSh71 billion has been returned to the fund, leaving roughly KSh12 billion still unpaid.

Officials believe a large number of borrowers intentionally defaulted after receiving the money. According to Tanui, some assumed that the loans would never be traced back to them.

However, the CEO said the system used to register borrowers collects detailed personal information. This includes identification data and location details that can help authorities find those who have stopped making repayments.

“The loan is tied to the National ID, and that ID can give the government the geographical location where you are because during onboarding you provide your location details,” Tanui explained.

The government now estimates that nearly two million borrowers may have defaulted on their Hustler Fund loans. Officials say the recovery effort is necessary to protect public resources and ensure the programme continues supporting small businesses and low-income earners in the future.